Tennessee Residential Lease Agreement

Introduction

A Tennessee residential lease agreement is a legally binding contract between a landlord and tenant that establishes the terms and conditions for renting residential property in Tennessee. This comprehensive guide outlines the key requirements, rights, and obligations under Tennessee law for both landlords and tenants entering into a rental agreement.

Required Disclosures

Landlord Information

Tennessee law requires landlords to provide specific information to tenants at or before the tenancy begins. The landlord must disclose in writing the names and addresses of: (1) the agent authorized to manage the premises, and (2) an owner of the premises or a person or agent authorized to act for and on behalf of the owner for the acceptance of service of process and for receipt of notices and demands. ^[1] This information must be kept current throughout the tenancy. Failure to comply makes the landlord an agent of each person who is a landlord for the purpose of service of process and receiving notices and demands.

Lead-Based Paint Disclosure

For residential properties built before 1978, federal law requires landlords to provide tenants with information about lead-based paint and lead-based paint hazards. ^[2] The landlord must: (1) disclose any known lead-based paint and hazards in the dwelling, (2) provide tenants with a federally approved lead hazard information pamphlet, and (3) include specific warning language and disclosures in the lease agreement. Both parties must sign and date the disclosure form.

Showings During Final 30 Days

If the landlord reserves the right to show the property to prospective tenants during the final 30 days of the lease term, this right must be explicitly stated in the rental agreement. ^[3] When this right is included in the lease, the landlord must provide at least 24 hours' notice before showing the property. This provision allows landlords to minimize vacancy periods while respecting tenant privacy with reasonable notice.

Security Deposits

Maximum Amount and Interest

Tennessee law does not set a maximum limit on the amount a landlord may charge for a security deposit. Landlords have discretion to determine the deposit amount based on factors such as the property value, rental amount, and tenant qualifications. Additionally, Tennessee law does not require landlords to collect or pay interest on security deposits held during the tenancy.

Separate Account Requirement

Tennessee law mandates that landlords deposit all tenants' security deposits in an account used only for that purpose, in any bank or other lending institution subject to regulation by the state or any agency of the United States government. ^[4] When the lease is signed, the landlord must inform the tenant of the location of the deposit account, though the account number need not be disclosed. This separate account requirement protects tenants by ensuring their deposits are properly maintained and available for return.

Inspection and Documentation

Tenants may request a mutual inspection to document damages at the end of the tenancy. ^[4] The landlord must provide written notice of this inspection right within five days of receiving notice of the tenant's intent to vacate. Any inspection must occur either on the day of vacation or within four calendar days thereafter. When both parties conduct a joint inspection, the landlord and tenant shall sign the listing, which constitutes conclusive evidence of damage accuracy unless the tenant specifically documents dissenting items in writing.

Tenants forfeit their inspection rights under certain circumstances: if they vacate without notice, abandon the premises, are judicially removed, fail to contact the landlord for the inspection, or do not appear at the scheduled inspection. These provisions balance the rights of both parties while encouraging proper communication and orderly transitions.

Return Timeline and Procedures

After the tenancy ends, landlords must notify tenants of any refunds owed from the security deposit. ^[4] If no response is received from the tenant within sixty (60) days, the landlord may retain the deposit. Before returning funds, landlords can apply deposits toward unpaid rent or other debts owed under the lease agreement. This process allows landlords to recover legitimate expenses while giving tenants a reasonable opportunity to respond and contest any deductions.

Landlords may only claim additional damages discovered within thirty (30) days after the tenant's departure or seven (7) days after a new tenant occupies the unit, whichever comes first. ^[4] This damage discovery window prevents landlords from making indefinite claims while providing adequate time to identify legitimate damages that may not be immediately apparent.

Landlord Obligations

Warranty of Habitability and Maintenance

Landlords must comply with building and housing codes that affect health and safety, make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition, keep all common areas of the premises in a clean and safe condition, and maintain in good and safe working order all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances supplied or required to be supplied by the landlord. ^[12]

In multi-unit complexes of four (4) or more units, landlords must provide and maintain appropriate receptacles and conveniences for the removal of ashes, garbage, rubbish, and other waste. ^[12]

Tenant Repair Requests

Tenants must give the landlord written notice about repair issues that need fixing. The landlord then has fourteen (14) days to make the repairs. ^[12] If the issue is not fixed by the landlord in a timely way, the tenant could end the rental agreement or seek a court order for repairs or compensation. The landlord and tenant may agree in writing that the tenant perform specified repairs, but only if entered into in good faith.

Essential Services

Tennessee law defines "essential services" as utility services, including gas, heat, electricity, and any other obligations imposed upon the landlord which materially affect the health and safety of the tenant. ^[13] If a landlord willfully fails to supply essential services, the tenant has specific remedies available. The rights regarding essential services do not arise until the tenant has given written notice to the landlord and has shown that the condition was not caused by the tenant's negligence.

Tenant Obligations

Maintaining Clean and Safe Premises

Tenants must comply with building and housing codes affecting health and safety and keep the premises as clean and safe as the condition of the premises when the tenant received them. ^[14] If a tenant fails to comply with these obligations in a way that materially affects health and safety, and the issue can be remedied by repair, replacement, or cleaning, the landlord may enter after giving fourteen (14) days' written notice and charge the tenant for the actual and reasonable cost of the work.

Preventing Damage and Proper Use

Tenants are responsible for all damages caused by their deliberate or negligent acts, or the acts of family members or guests. Tenants must use all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances in a reasonable manner. ^[14]

Landlord's Right to Enter

General Access Rights

Tennessee law grants landlords the right to enter rental premises under specific circumstances. ^[5] Landlords may enter when tenants shall not unreasonably withhold consent for: inspections, repairs, decorations, improvements, services, or showing the property to prospective buyers or contractors. The statute does not specify a minimum notice period for routine access, but the requirement that tenants not unreasonably withhold consent implies that landlords must request access in a reasonable manner.

Emergency Access

Landlords may enter without tenant consent during emergencies. ^[5] Tennessee law defines an emergency as "a sudden, generally unexpected occurrence or set of circumstances demanding immediate action." This exception allows landlords to respond to situations such as fires, floods, gas leaks, or other urgent threats to health, safety, or property without waiting for tenant permission.

Additionally, when utilities are disconnected through no fault of the landlord, entry is permitted to inspect for damages and make necessary repairs. This provision protects the property from deterioration due to lack of heat, water, or other essential services.

Restrictions and Prohibited Conduct

While landlords have certain entry rights, Tennessee law explicitly prohibits abuse of these rights. ^[5] The statute states: "The landlord shall not abuse the right of access or use it to harass the tenant." This protection ensures that entry rights are exercised reasonably and in good faith, not as a means to intimidate or disturb tenants.

Landlords may only enter through: court order, specific statutory provisions, abandoned or surrendered premises, or when tenants are deceased or incarcerated. Outside these circumstances, landlord access requires tenant cooperation or falls within the emergency exception.

Showings to Prospective Tenants

During the final 30 days before lease termination, landlords may show the premises to prospective tenants if this right appears in the rental agreement and at least 24 hours' notice is provided beforehand. ^[3] This specific provision balances the landlord's interest in securing new tenants quickly with the current tenant's privacy rights during the transition period.

Rent Payment Terms

Grace Period for Rent Payment

Tennessee law provides a mandatory five (5) day grace period beginning the day the rent was due to the day a fee for the late payment of rent may be charged, with the date the rent was due included in the calculation. ^[10] If the last day of the five-day grace period occurs on a Sunday or legal holiday, the landlord shall not impose any charge or fee for the late payment of rent provided that the rent is paid on the next business day.

Late Fees

Any charge or fee charged by the landlord for the late payment of rent shall not exceed ten percent (10%) of the amount of rent past due. ^[10] This limitation applies to all late fee charges regardless of how they are structured or described in the lease agreement. Tennessee law is explicit in capping late fees to ensure they remain reasonable and proportional to the overdue amount.

Returned Check Fees

When a tenant's rent check is returned for insufficient funds (NSF), Tennessee law permits landlords to charge a service fee. ^[6] Under Tennessee Code 47-29-101, a person who receives a check that is subsequently dishonored may collect a service charge not exceeding thirty dollars ($30.00) if the face amount of the check is one hundred dollars ($100) or less, or not exceeding the greater of thirty dollars ($30.00) or five percent (5%) of the face amount of the check if the face amount exceeds one hundred dollars ($100). This fee compensates the landlord for administrative costs and bank charges associated with the returned payment.

Lease Termination

Fixed-Term Leases

Fixed-term leases in Tennessee automatically expire at the end of the specified term without requiring advance notice from either party. However, if either the landlord or tenant wishes to provide notice of non-renewal or intention to vacate, the lease agreement may specify notice requirements. Many leases include provisions requiring 30 or 60 days' notice before the end of the term to clarify the parties' intentions and facilitate planning for both sides.

Month-To-Month Tenancies

Eviction for Non-Payment of Rent

For nonpayment of rent, unless waived in writing, the landlord must give the tenant fourteen (14) days' written notice stating the amount due and that the lease will terminate if payment is not made. ^[11] Upon receiving this notice, the tenant has up to 14 days to pay the owed rent, vacate the premises, or face eviction proceedings in court. If the tenant pays the rent within the 14-day period, the landlord must not proceed with the eviction lawsuit.

This 14-day notice requirement applies statewide in Tennessee, regardless of whether the property is in a county governed by the URLTA or the regular Tennessee Code. Remember that the five (5) day grace period for late rent payments ^[10] applies before late fees can be charged, but this grace period is separate from the 14-day notice requirement for eviction proceedings.

Termination for Violent or Dangerous Conduct

Tennessee law provides specific grounds for immediate lease termination by the landlord in serious situations. ^[8] A landlord may terminate the rental agreement within three (3) days of written notice if a tenant or occupant: (1) willfully or intentionally commits a violent act, (2) behaves as a real and present danger to the health, safety, or welfare of others or property, (3) creates hazardous conditions affecting tenant welfare, or (4) refuses to vacate as an unauthorized occupant.

Repeat Lease Violations

If a tenant commits substantially the same violation within six (6) months of receiving notice for a first instance of the violation, the landlord can terminate the lease with only seven (7) days' written notice for the subsequent violation. ^[11] This expedited notice period recognizes repeat violations as more serious breaches of the lease agreement.

Tenants have the right to seek court injunctions against improper termination. Landlords cannot interrupt essential services, and willful bad-faith termination allows tenants to recover damages plus attorney fees. The statute also contains special provisions protecting domestic abuse victims from eviction based solely on the abuse itself, provided an order of protection exists.

Abandonment

When a tenant abandons the rental property, Tennessee law allows landlords to treat the tenancy as terminated under certain conditions. ^[9] A landlord may consider a property abandoned if: (1) the tenant has not paid rent for at least 15 consecutive days, (2) the tenant has been absent from the property for at least 15 consecutive days, and (3) the tenant has removed substantially all personal property from the premises. The landlord must provide written notice to the tenant at the last known address before treating the property as abandoned. After proper notice and the expiration of required waiting periods, the landlord may take possession of the premises and dispose of any remaining personal property according to statutory procedures.

Breaking a Lease

Early Termination by Tenant

Tennessee law does not provide a general right for tenants to break a lease early without consequences. When a tenant terminates a fixed-term lease before the expiration date, the tenant typically remains liable for rent through the end of the lease term. However, landlords have a duty to mitigate damages by making reasonable efforts to re-rent the property. If the landlord successfully re-rents the unit, the original tenant's obligation ends when the new tenancy begins.

Tennessee recognizes certain exceptions that allow tenants to terminate leases early without penalty. These include: (1) active military duty requiring permanent change of station or deployment under the Servicemembers Civil Relief Act (SCRA), (2) domestic violence situations where the tenant is a victim and has obtained an order of protection, and (3) landlord's material breach of the lease agreement or failure to maintain habitable premises. In these situations, tenants must provide proper documentation and follow statutory notice procedures.

Landlord Remedies for Early Termination

When a tenant breaks a lease without legal justification, the landlord may pursue several remedies. The landlord can retain the security deposit to cover unpaid rent and damages. Additionally, the landlord may sue the tenant for: (1) remaining rent owed under the lease term (minus any amounts recovered by re-renting), (2) costs incurred to re-rent the property, such as advertising and showing expenses, and (3) repair costs beyond normal wear and tear. However, landlords cannot collect double rent; if the property is re-rented, the original tenant's liability ends when the new tenancy begins.